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Withdrawal Rates: Will Assets Last?

Withdrawal Rates: Will Assets Last?

The following three tables, based on a 20-, 25-, and 30-year period, show the chances of whether or not a stock/bond portfolio will last an investor until death. The 2009 study by BlackRock shows inflation-adjusted withdrawal rates ranging from 1-10% per year and stock/bond allocations ranging from 20-100%.

 

20-Year Period  [stock/bond allocations]

 

20/80

40/60

60/40

80/20

100/0

1%*

100%

100%

100%

100%

100%

2%*

100%

100%

100%

100%

100%

3%*

100%

100%

100%

100%

99%

4%*

99%

100%

98%

97%

94%

5%*

93%

94%

91%

88%

85%

6%*

65%

74%

74%

73%

73%

7%*

31%

43%

50%

55%

57%

8%*

10%

21%

32%

38%

42%

9%*

3%

8%

17%

26%

32%

10%*

1%

3%

8%

15%

23%

 *inflation-adjusted annual withdrawal rate (% of portfolio)

 

25-Year Period  [stock/bond allocations]

 

20/80

40/60

60/40

80/20

100/0

1%*

100%

100%

100%

100%

100%

2%*

100%

100%

100%

100%

99%

3%*

100%

100%

99%

98%

96%

4%*

94%

95%

94%

90%

86%

5%*

68%

75%

77%

75%

73%

6%*

33%

46%

54%

57%

59%

7%*

10%

22%

31%

40%

44%

8%*

3%

7%

16%

23%

33%

9%*

0%

3%

7%

13%

23%

10%*

0%

1%

4%

8%

16%

 *inflation-adjusted annual withdrawal rate (% of portfolio)

 

30-Year Period  [stock/bond allocations]

 

20/80

40/60

60/40

80/20

100/0

1%*

100%

100%

100%

100%

100%

2%*

100%

100%

100%

100%

99%

3%*

98%

98%

98%

95%

94%

4%*

83%

87%

87%

84%

82%

5%*

46%

58%

63%

64%

66%

6%*

15%

29%

40%

45%

51%

7%*

4%

11%

22%

29%

37%

8%*

1%

4%

10%

18%

27%

9%*

0%

1%

4%

11%

16%

10%*

0%

0%

2%

6%

11%

 *inflation-adjusted annual withdrawal rate (% of portfolio)

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